U.S. Treasury yields held steady or fell on Friday on renewed appetite for bonds as a two-day scramble for stocks and other risky assets slowed. Longer-dated yields declined from one-week highs as bargain-minded traders reckoned that two days of selling and exits from flattener trades, or bets that shorter-term rates would rise faster than longer-term rates, were overdone.
In the lightest trading day since Nov. 28, the 10-year benchmark Treasury note yield slipped 3 basis points to 2.171 percent, after it recorded on Thursday the biggest two-day increase since June, following the Fed's policy meeting on Wednesday where the wording on rates staying low "for a considerable time" was maintained but tweaked to add "patient".
The 30-year bond decreased 4.6 basis points to 2.768 percent.
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The rebound in the bond market was mitigated by further strength in the stock market with the S&P 500 rising 0.7 percent on Friday. Three Fed officials on Friday gave clues on the thinking inside the Fed as it considers the timing on a rate lift-off.